Integration of Ecosystem Services into Development Planning

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1 Integration of Ecosystem Services into Development Planning An introduction and outlook Presented by Dr. Berthold Seibert on the basis of material prepared under the GIZ titles: ZI: Biodiversity and Ecosystem Services SV: Implementation of the CBD Seite 1

2 Biodiversity is more than species conservation ) Seite 2

3 Urgent need to integrate ecosystem services into the macro-economics of our societies (TEEB, 2007) We can t manage, what we don t measure (TEEB, 2010) The UN targets to reduce biodiversity loss were not achieved (GBO 2010) Strategic Plan of the CBD for : Mainstreaming through combating the drivers of biodiversity loss TEEB is one of the three pillars of Green Economy (UNEP), besides Green Jobs and Renewable Energy Recognizing the role of ecosystem management for the implementation of Green Economy (UNEP ISSUES Paper, International Ecosystem Management Partnership) Two thirds of all Ecosystems are either degraded or destroyed (MAE 2005) Seite 3

4 Biodiversity in German Development Cooperation Biodiversity conservation and the promotion of Ecosystem Services is a guiding principle of German Development Policy. As from 2013 on, Germany will provide 500 Million Euros/year for the conservation and sustainable use of Biodiversity. The implemetation of TEEB is important element thereof In this context, Conservation and sustainable use of Biodiversity goes beyond traditional approaches towards the protection of Nature, Species and Ecosystems. There is urgent need for Mainstreaming within German development policy and in relation to the policies and strategies of partner countries. Seite 4

5 Reference: Initiatives for the valuation and integration of ecosystem services in political and economic decisions TEEB: The Economics of Ecosystem Services and Biodiversity Guide to Corporate Ecosystem Valuation (WBCSD, WRI, IUCN, ERM, PWC) An Introductory Guide to Valuing Ecosystem Services (DEFRA) The Corporate Ecosystem Services Review (WRI) Corporate Biodiversity Management Handbook (GTZ-BMU) Ecosystem Goods and Services in Developing Planning: Guidelines of CBD Secretariate There is a need for practical orientation on the Integration of Ecosystem Services in Development Cooperation Seite 5

6 The Approach Integrating ecosystem services into development planning (IES) Seite 6

7 The Essence Biodiversity is the basis of functioning ecosystems Development is linked to the availability of ecosystem services Development and economic activities can have negative impacts on ecosystems In development planning and implementation: HOW can we and our partners: Reduce the dependency on ecosystem services Reduce negative impacts of development on ecosystems Enhance quality and quantity (availability) of ecosystem services Which Risks can we avoid? Which Opportunities can we use? How is the distribution of costs and benefits? Seite 7

8 The IES Approach What is IES? A stepwise Approach to systematically evaluate and value Ecosystem Services and to integrate them in development processes. What is the Purpose? (i) to demonstrate the importance of ecosystem services in development planning; (ii) to visualise the impact of development on the avalability of ecosystem services. (iii) to clarify risks and opportunities, to identify, assess and implement alternatives. When and where can the approach be used? Design, Implementation, Monitoring and Evaluation of planning processes, projects and activities. Seite 8

9 IES: Stepwise approach for integrating ecosystem services into development planning Define the Screen & scope priorize 1 2 Identify conditions & trends 3 Appraise institutional & cultural frameworks Promote better decision making 4 5 Implement change 6 GIZ 2011 Recognise the value of Ecosystem Services Describe the values of Ecosystem Services Integrate the values of Ecosystem services in decisions Seite 9

10 Products and Services Manual Integrating Ecosystem Services into Development Planning (IES) Training with Harvard Case Methodology (SOA, Germany, Costa Rica, Namibia and SADC, Brazil). Sensitization of political Decision Makers: Conferences (PEP, SOA, MENA Region, Brazil) Support to Dialogue Processes (Brazil, Costa Rica, Peru, SOA, MENA) Professional support in the implementation of IES methods and instruments (Peru, Vietnam, Brazil, Costa Rica) Support to Networks and knowledge management (SNRD Africa and SOA, GARDELAK) Support to appraisal missions + elaboration of offers (India, Brazil, Mexiko, Ecuador and Colombia ) Seite 10

11 Next Steps Train the Trainers (ToT) IES event in January 2012, envisaged regional training (ACB, Philippines, 2012) Training and Consultancy in IES Processes (Vietnam, Ecuador, Costa Rica, Brazil, Mexiko, Peru, Thailand, ) Socialising and dissemination of the manual in other sectors (water, energy, agriculture) Cooperation with UNEP: Capacity Building and dialogue processes Professional support for the development of project ideas and proposals (e.g. ICI) Learning from field implementation: IES and first experiences in EU/GIZ/UFZ: ECO-BEST, Thailand Seite 11

12 Comments on TEEB from the Field: ECO-BEST, Thailand A good new package to communicate Ecological Economics to a wider public Difficult to contextualize for ecologists and Protected Area managers TEEB is difficult to introduce in Project development and implementation Project managers were requested by partners at all levels to find a simple word for being used with LOCAL stakeholders and in particular at the community level An effort is necessary to make TEEB an outstanding approach for the practitioner Seite 12

13 What would be needed to make TEEB more palatable? I was asked many time to share more information on the economic tools/instruments that would be used/developed in other countries Wherever I presented our project and TEEB, it was considered very interesting and useful To learn how to interpret Protected Areas and their assets and benefits in economic terms is an urgent need for Park and PA managers. They know they must go into this direction, and there is a need to apply economic instruments to ensure community and political support Seite 13

14 Is the application of IES in Development Planning a solution? IES is a logical consequence of the TEEB study and an important step towards implementing the approach IES addresses the issues and tries to find practicable solutions to some of the raised questions IES provides clear guidelines e.g. through the six-steps approach Still only one (the sixth and last) of the steps addresses field implementation; why? Finally, IES is a contribution towards achieving tha CBD Aichi Target 2 Seite 14

15 Aichi target 2 of the Strategic Plan By 2020, at the latest, biodiversity values have been integrated into national and local development and poverty reduction strategies and planning processes and are being incorporated into national accounting, as appropriate, and reporting systems. Thank you Shirley Huang, 2004 Seite 15

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17 EVOLUTION OF FOREST COVER IN COSTA RICA PERIOD YEAR2000 Seite 17

18 EVOLUTION OF FINANCIAL MECANISMS PSA Phase III Phase II Payment for Environmental Services Forest Support Certificates Reforestation, Forest Management and Protection Phase I Profit Tax Deduction For Reforestation Tax Deduction for forest protection Seite 18

19 RECOGNIZED ENVIRONMENTAL SERVICES Costa Rica Carbon sequestration Protection of water resources Biodiversity Protection Scenic Beauty Seite 19

20 PAYMENT FOR ENVIRONMENT SERVICES Implementation of the Institucional Framework and of Financial Mecanisms Modification of Legal Framework SINAC, FONAFIFO CCD Forestal Law Biodiversity Law Agreements at the Earth Summit (Agenda 21, CCC, CDB) Rio 1992 Global Acknowledgment of Environment Services Seite 20

21 Where do the Funds come from? (Costa Rica) National International GOVERNMENT Fuel Taxes (3.5%) US$7 millon / year Water Tariffs Agreements with Hydropower Plants PRIVATE Electric Power Plants Water Providers Payment for Environment Services World Bank Loan of US$ 32.5 mill. Donation GEF of US$ 8 mill. Norway US$ 2 mill. KFW (Germany) US$ 10 mill. Seite 21

22 Thank you AGAIN for your ATTENTION Shirley Huang, 2004 Credit: Future Innovation, Biodiversity and Ecosystem Services SV Biodiv - Marina Kosmus, Isabel Renner, Silvia Ullrich, Seite 22